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Simpson Manufacturing Offers To Buy Etanco Group For 725 Mln Euros

Simpson Manufacturing Co., Inc. (SSD), Wednesday said it has submitted an offer to acquire the Etanco Group for 725 million euros, or about $818 million.

Etanco is a designer, manufacturer and distributor of fixing and fastening solutions for the building construction market throughout Europe, which includes innovative fasteners, connectors, anchors and safety solutions for roofing, cladding, façade, waterproofing and solar applications.

For the twelve months ended September 30, 2021, Etanco's net sales and operating income margin were approximately 258 million euros and 19.7%, respectively.

Simpson expects the deal to close near the end of the first quarter of 2022 and is anticipated to be accretive to the company's earnings within the first fiscal year after closing.

"Etanco's business of providing reputable, highly engineered technical solutions with a high focus on customer service, align with Simpson's core business model and values, making Etanco an ideal acquisition to support continued growth in our European business," said Karen Colonias, President and Chief Executive Officer of Simpson Manufacturing Co., Inc. "The acquisition of Etanco fortifies our footprint and expands our geographical reach in Europe, deepens Simpson's portfolio of solutions with new and existing customers, and allows us to enter into new commercial building markets and grow our direct sales activity across the region. Further, we expect the acquisition to drive significant net sales growth with operating income synergies of approximately $30 million on an annual run rate basis."

The acquisition is expected to be funded via a combination of $100 million of existing cash with the remainder from borrowings under the company's existing Revolving Credit Facility, which will be increased from $300 million to $450 million, and a $450 million unsecured term loan with committed financing from Wells Fargo Bank and MUFG Union Bank.

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